If there's been one nagging issue that's seemed to slow down our economy's recovery, its anemic jobs growth. While jobs have been bouncing back, the rate of growth isn't nearly fast enough to get us to where we want to be. There are still too many Americans unemployed or underemployed.
Some industries, though, are experiencing growth and are even struggling to find qualified workers. That's seen most clearly in the growth of energy development. Demand from around the globe has spurred hiring within the industry, and it doesn't appear to be slowing down anytime soon.
Top jobs in demand include engineering and technical services, with a sprinkling of project and supply-chain management. The problem is that companies simply can't find all the workers they need. This situation is creating an unexpected growth hurdle for many companies.
There are a number of issues facing the industry, from widespread turnover resulting from the long hours and difficult work to an issue finding applicants who can pass a drug test. A recent Wall Street Journal article titled "Wanted: Drug-Free Workers" highlighted the issue. The article noted that one environmental-service company working in the Marcellus shale had to turn away 7% of applicants because of failed drug screenings -- four times the national average. This particular company is looking to grow its workforce by 50% and has been struggling to find employees.
Other areas of the country, such as the Bakken in North Dakota, face a different problem in finding workers: lack of housing. Companies with access to housing have a strong competitive advantage. Heckmann's (NASDAQOTH: NESC ) CEO, for example, owns a housing business, which makes a material difference in his company's ability to attract employees, and it also helps customers find affordable housing for their employees.
The Bakken boom has had a noticeable effect on North Dakota's unemployment rate, which is less than half of the national average:
While there are jobs, and lots of them, the other major issue for the industry is finding workers with the advanced technical knowledge oil and gas companies require. This is where schools are getting in on the act, by creating more focused programs aimed at producing the kind of talent these companies need. The industry sees this as an important collaboration, which is why it has opened up its wallet and has taken a very hands-on approach to this problem.
In one example, Ron Harrell, chairman emeritus of petroleum consulting firm Ryder Scott, said that in 2008, Marathon Oil (NYSE: MRO ) committed $600,000 to the University of Houston's petroleum engineering program. Today, an advisory board at the school includes representatives from oil and gas and oil field services firms, including Schlumberger (NYSE: SLB ) , BP (NYSE: BP ) , and Anadarko (NYSE: APC ) .
What's important to realize is that the industry's needs aren't going away anytime soon. Offshore growth is one area job seekers should concentrate on because of its recent resurgence after the 2010 Gulf of Mexico disaster. Companies are investing billions in the Gulf in an effort to grow oil and gas production. BP, for example, is spending $4 billion annually in the Gulf through the end of this decade.
Anadarko recently discovered a significant oil deposit in the Gulf, and that project and others to follow mean the company will require many more workers. It's not just the oil and gas producers that will require workers; oilfield service companies such as Schlumberger, which employs 120,000 around the globe, will also need additional workers in the years to come to keep oil production flowing.
According to the U.S. Bureau of Labor Statistics, there are a variety of oil-related occupations that will see demand growth for the rest of the decade. For example, demand for petroleum engineers is expected to grow by 17% this decade. Another area to focus on is indirect jobs affected by an industry's growth. These jobs are expected to grow even faster, with iron work growing 49%, pipefitting 26%, and steel 22%. Further, many of the industry's workers are getting older and will be retiring, which will create additional job openings.
The jobs situation here in America is no longer as bleak as it once was, and nowhere is this more evident than in the oil and gas industry. The biggest hurdle is the lack of an experienced and educated workforce. While that means applicants will need to put in a lot of extra effort to land one of those jobs, the good news is that those jobs don't appear to be going anywhere for a long, long time.
Not only does increased oil production mean more jobs, but it also means a solid future of investment returns for oil and gas companies. If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." For free access to this special report, simply click here now.